How To Sell Silver

When considering a sale of physical silver holding, an investor should firstly ensure that he knows exactly what he holds. If the silver is in the form of bullion bars or rounds, then the weight and purity of the silver should be known before approaching a dealer or potential purchaser. It shouldn’t be forgotten that, often, silver jewelry may have a higher value than its simple ‘melt value’, and efforts should be made to establish rarity, age, and type before going ahead with a sale: doing this will ensure that the investor receives the best price possible.

In most cases, bars, coins and rounds can be sold at a bullion exchange at near spot price. In major cities this is not a problem. The only issue you may run into is the need for certified or standardized bars, coins and rounds. They will generally not exchange non-standard non-verified silver pieces. In most cases silver sells under spot, so keep that in mind. A conversion of your silver to total in troy ounces is sufficient to determine a total size of your holdings. The spot price  may then be used to determine a value.

Bullion coins or bars will be valued dependent upon weight and grade of silver, whilst numismatic coins will have a value more dependent on rarity and condition than silver content. To sell rare coins, you are better to do it through a collector sourced locally or online. Ebay is an excellent junk silver marketplace as well.

Silver testing kits can be used to determine the quality of silver in carats. Using this information with the weight of the piece one can determine the value of the raw silver. Silver testing kits are very useful for purchasing silver jewelry of unknown silver quantities or purchasing bars of unknown purity.

Click here to browse silver testing kits.

Once a decision has been taken to sell his silver, and its value researched and assessed, then its necessary to know where to sell it, as well as any associated costs of doing so. Jewelry can be sold at auctions, or in High Street dealers, or through internet auctions like eBay. Silver content of jewelry can be determined with our carat conversion chart. The jewelry can then be weighted in terms of troy ounces and priced with the carat.

Example: A 0.5 ounce piece of 18 carat silver is worth 0.5 * (current price of $20) * 0.75 = $7.5 in raw silver. Jewelry may be worth more than it’s raw price of silver but now you have an idea of the value.

Carat conversion:
58.33% – 62.50% = 14k (acclaimed 58.33%)
75.00% – 79.16% = 18k (acclaimed 75.00%)
91.66% – 95.83% = 22k (acclaimed 91.66%)
95.83% – 99.95% = 23k (acclaimed 95.83%)
99.95 and above = 24k (acclaimed 99.99%)

The internet, of course, can be used to sell numismatic coins, also, and this does open up the seller to a larger pool of potential buyers. However, specialist coin dealing shops are often a good place to either sell particular coins or be introduced to buyers looking for them.

It is easier to sell silver bullion bars, or rounds. They can be sold direct to silver dealers, or to High Street dealers, or via the internet. Silver bars are stamped with details of grade and may be accompanied by a certificate of authenticity, which should be sold on with the bar.

Silver ETF’s and shares of publicly quoted silver mining companies can be easily sold on a stock exchange at readily available prices.

Last but not least

An investor that knows the current silver price, and the value of what it is he wishes to sell, is likely to achieve the best price possible on sale. It shouldn’t be forgotten, however, that the buyer is also looking to make a profit. This is particularly true when considering silver bullion and second hand jewelry. It is not often that a seller of silver bullion investments will see a premium to the cash silver price, but he should be looking to suffer as small a discount to this value as possible.

Selling Silver Costs an Investor

Just as with most investments, there will always be a cost when selling silver. The sale of shares or ETF’s will incur a commission or fees payable to the stockbroker used. Taking gold to a dealer on the High Street will involve transport, and selling at auction, whether at an auction house or on line, will suffer commissions and fees, and possibly even postage costs.

If selling to a dealer, an investor should never be too nervous to request he be allowed to check scales used to weigh his silver.

Finally, a good investor will always know the tax implications of a sale of his silver.

Getting the most for your silver isn’t just a question of the highest price paid on the day. Knowing the right price, keeping costs down to a minimum, and paying as little tax as possible is all part of the deal.

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How To Sell Silver

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